INSTANT VIEW 4-Slovak March EU-norm CPI touch above forecast

                                
 BRATISLAVA, April 16 (Reuters) - Slovak EU-norm consumer
prices rose by 0.3 percent on the month in March, putting the
annual inflation rate at 3.6 percent, the Slovak Statistics
Office said on Wednesday.
                                
 It was the last set of data on Slovak consumer prices ahead
of an assessment of the country's bid to join the euro zone.
****************************************************************
 KEY POINTS:
 SLOVAK EU-NORM INFLATION       MARCH 08    MARCH 08 FORECAST
  pct change mo/mo                +0.3           +0.2
  pct change yr/yr                +3.6           +3.5
(Details of March inflation data .............[ID:nBSD000060])
  
- Food and non-alcoholic beverages rise by 0.3 percent
month-on-month, slowing down from a 0.5 percent increase in
February.
- Housing, water, electricity, gas and other fuel prices rise by
0.4 percent in March, after a 0.1 percent rise in the previous
month.
- Transportation prices rise by 0.1 percent month-on-month,
after a 0.3 percent increase in February.
- The food and non-alcoholic beverages category is up 7.6
percent on the year.
- Annual price growth in the housing category is 3.1 percent in
March.
                                
 
COMMENTARY:
                                
 RAFFAELLA TENCONI, ANALYST, DRESDNER KLEINWORT
                                
 "EU-norm inflation was touch above expectation, but this
does not change the overall picture - the 12-month EU-norm
inflation average is well below the Maastricht ceiling."
                                
 "Positively, the month-on-month rise in hotel and restaurant
prices, which signal demand-led pressures, slowed in March,
significantly below the February and January figures."
                                
 "Thus the release is overall neutral with regards to the
question of the European Commission's interpretation of the
sustainability of low inflation in Slovakia."
                                
 
                                
 MIROSLAV FRAYER, ANALYST, KOMERCNI BANKA:
                                
 "The figure is not a surprise, it was in line with inflation
data calculated under the local methodology."
                                
 "The buffer will be wide enough to satisfy the meeting of
the inflation criterion."
 "Sustainability the criterion should be met too ... but
there are some risks spilling over from retail sales data, which
could indicate demand-led inflationary pressures, and wage
growth... risks exists."
                                
 
                                
 JURAJ VALACHY, ANALYST, TATRA BANKA:
                                
 "It is in line with inflation data calculated under the
local methodology .. it was driven mainly by food prices."
                                
 "We have met the nominal inflation criterion today, with a
big buffer."
                                
 "The 12-month average is 2.2 percent and the reference value
(for euro zone entry) should be around 3.2 percent."

                                
 MICHAL MUSAK, ANALYST, SLOVENSKA SPORTITELNA:
                                
 "Although it is virtually certain Slovakia met the nominal
criterion, it will still have to defend its position on the
issue of price performance sustainability, which poses some risk
to Slovakia's euro chances."
                                
 "We estimate the probability of positive assessment at 85
percent"
                                
 "Slovakia's 12-month average (inflation) is 2.2 percent."
                                
 
MARKET REACTION:
                                
 Crown at 32.30 to the euro <EURSKK=> from 32.29 ahead of the
data.
                                
 
BACKGROUND: 
 - March inflation data are the last in the 12-month period set
for assessing Slovakia's readiness to join the euro zone in
2009.
 - The 12-month average Slovak inflation rate is likely to be
well below the threshold for euro adoption, which is defined as
1.5 percentage points above the average of three lowest national
inflation rates in the European Union.
 - EU inflation data are due out at 0900 GMT on Wednesday.
 - Slovak price growth has accelerated in the past few months,
mainly on rising cost of food and energy.
 - The central bank left its key two-week repo rate at 4.25
percent in March, maintaining steady borrowing costs for the
11th month in a row.
                                
 
LINKS:
- For further details on March inflation and other past data,
Reuters 3000 Xtra users can click on the Slovak Statistics
Office's website:
http://wwww.statistics.sk/webdata/english/index2_a.htm
                                
  
- For LIVE Slovak economic data releases, click on......<ECONSK>
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 (Reporting by Peter Laca and Martin Santa; Editing by Stephen
Nisbet)